The US fixed annuity market lost momentum in the second quarter
of 2009 with sales falling 20 percent compared with the previous
quarter to $27.8 billion, reveals data supplied by independent
fixed annuity research firm Beacon Research.
However, on a year-on-year basis fixed annuity sales again
performed well in the second quarter and compared with the second
quarter of 2008 sales increased 10 percent. In the first half of
2009 sales of $62.6 billion were 39 percent higher than in the
first half of 2008.
Fixed annuity sales growth also continued to outperform variable
annuities (VA) according to consulting and research organisation
LIMRA International, which reported that VA sales fell 24 percent
compared with the second quarter of 2008 to $31.9 billion in the
second quarter of 2009.
However, for the first time in three consecutive quarters VA sales
in the second quarter of 2009 were higher than fixed annuity sales,
marking a return to the sales balance that prevailed since the
second half of 1995.
The second quarter of 2009 saw a considerable shift in market
shares and positions amongst fixed annuity producers.
New York Life (NYL) moved into first place from second in the first
quarter of 2009, to reclaim its long-held sales leadership from
MetLife which fell to seventh in the rankings. MetLife’s sales
slumped from $3.63 billion in the first quarter of 2009 to $951
million in the second quarter while, despite its ranking
improvement, NYL’s sales were down 18 percent, from $3.47 billion
to $2.85 billion.
Also showing a strong improvement was Aviva USA which shifted from
third position in the first quarter of 2009 to second despite a 32
percent fall in sales to $1.67 billion.
Performing strongly across the board, Allianz improved sales by
almost 15 percent to $1.55 billion and its ranking from seventh to
Also putting in a notable performance was fixed annuity focused
American Equity Investment Life Insurance, which saw sales jump 75
percent compared with the first quarter of 2009 to $1.1 billion.
This increased the Des Moines, Iowa-based insurer’s market share
from 1.8 percent to 4.1 percent.